One of the benefits of mindfulness is that it enables you to

Beckham Broadcasting Company (BBC) has operating income (EBIT) of $2,500,000. The company's depreciation expense is $500,000 and

Neko [114]

Answer:

The correct answer is option (D).

Explanation:

According to the scenario, the given data are as follows:

Operating Income (EBIT) = $2,500,000

Depreciation Expense =$500,000

Tax rate = 40%

Net investment = $1,000,000

So, we can calculate the BBC's free cash flow by using following formula:

= EBIT × (1 -Tax Rate) + Depreciation & Amortization - Net investment

Now put these values to the above formula

So, the value would equal to

= $2,500,000 × ( 1 - 40%) + $500,000 - $1,000,000

= $1,500,000 + $500,000 - $1,000,000

= $1,000,000

4 0

2 years ago

Fullerton Waste Management purchased land and a warehouse for $720,000. In addition to the purchase price, Fullerton made the fo

g100num [7]

Answer:$813,000

Explanation:

The cost of property plants and equipment in relation to IAS 16 includes the purchase price, related tax, transportation, professional fee, first insurance cost, and all other costs incurred to put the property in a position to be put into the desired use. The cost also includes all related miscellaneous cost.

8 0

2 years ago

Attraction Corporation produces specially machined parts. The parts are produced in batches in one continuous manufacturing proc

Juliette [100K]

Answer:

c. machining.

Explanation:

Unit level activities take place in order to manufacture the product. This manufacturing process has four activities:

engineering
setups
machining
inspecting

Unit level activities depend on the amount of units produced, this means that as more units are produced, more costs will be allocated. In this case, engineering, setups and inspecting are done on a batch basis, which means that they are batch level activities.

Only machining costs are proportional to the number of units produced.

3 0

2 years ago

Explain why the death of selena led to a growth in the number of consumer products targeted specifically at the latino community

Maksim231197 [3]

Answer:

Not relevant to her death but it had to do with the timing in which it happened.

Explanation:

Remember she was indeed a stars among Hispanic Americans, according to reports Latinos bought millions of records by the singer who they saw as a model.

Prior to her death there were plans to lunch consumer products targeted specifically at the Latino community considering their market potential from the entertainment industry.

Christy Haubegger decided to lunch one of such consumer products the Latina Magazine which focused on the Latino community leading to more of these products.

7 0

2 years ago

Suppose the government, in an effort to avoid an increase in the deficit, votes for a budget neutral tax cut policy. Assume the

mafiozo [28]

PART A:

The government has voted for budget neutral tax cut policy in order to avoid the enhancement in the deficit. Thereby, government spending will be reduced by an amount of $8 billion.

PART B:

The calculation for fall in GDP is as follows:

$\text { Change in } G D P=\frac{-M P C}{1-M P C}$

Multiply with change in government expenditure,

$\Rightarrow\frac{1}{1-0.85} \rightarrow \text { multiply with }(-8)=-53.33 \text { billion }$

Thus, if the government expense is reduced by $8 billion then fall in GDP is by $53.33 billion

EFFECT ON GDP DUE TO REDUCTION OF TAX:

$\text { Change in taxes }=\frac{-M P C}{1-M P C}$

Multiply with change in tax,

$\Rightarrow \frac{-0.85}{1-0.85} \rightarrow \text { multiply with }(-8)=45.33 \text { million }$

Thus, when the taxes are reduced by $8 billion, then GDP shows an increase by $45.33 billion.

Therefore, change in equilibrium level of real GDP = -$8 billion ( -53.33 billion + 45.33 billion).

7 0

2 years ago